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A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 0 $ 153,000 1 63,000 2 76,000 3 60,000 Requirement
A firm evaluates all of its projects by applying the IRR rule.
Year | Cash Flow | |
0 | $ | 153,000 |
1 | 63,000 | |
2 | 76,000 | |
3 | 60,000 | |
Requirement 1: |
What is the project's IRR? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
Internal rate of return | % |
Requirement 2: | |
If the required return is 13 percent, should the firm accept the project? | |
Yes or No | |
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